Shares of commercial printer Quebecor World Inc. lost two-fifths of their value Tuesday as investors reacted to a $400-million rescue financing package for the company.

Quebecor World stock plunged 34 cents to close at 47 cents on the TSX.

Quebecor World 3-month stock chart

The rescue plan, which was accepted late Monday by Quebecor World, will see Quebecor Inc. and Tricap Partners Ltd., a private equity fund run by Brookfield Asset Management Inc., inject $200 million in interim financing by Wednesday.

By the end of March, the interim financing will be replaced with a recapitalization plan involving a $400-million issuance of senior secured notes to Quebecor Inc. and Tricap. The two investors will also be issued subordinate voting shares equal to 75 per cent of the total equity of Quebecor World.

"Following a careful review of the proposal, a special committee composed of the independent directors of Quebecor World has concluded that accepting the proposal is in the best interests of the company and its stakeholders," Quebecor World said in a release. The rescue plan was initially unveiled on Jan. 11.

A rescue plan was critical to Quebecor World's future, as it faced a deadline Tuesday to arrange $125 million US in new financing.

Quebecor World has been struggling with price pressures, lower volumes and operating inefficiencies. In recent months, it has posted a $315-million quarterly loss, cancelled a European asset sale and replaced its CEO. The company has also seen an earlier financing plan fall through.

Its debt has been downgraded to "junk" status by the DBRS rating agency.